After careful consideration, I have decided to kick off another year with a new target. Percentage-wise, it is not a lot different from the target for last year Taking 320K to 3.5million by Year End 2009
, which was not achieved. The slow-down in volatility towards the end of last year made me think I should perhaps bring down expecations for this year, as it looks likely to be a low volatility one. However, I believe there are enough opportunities even in a slow year to aim as high as this. My second-half performance last year works out to an average weekly rate of 3.3% compounded. My target this year is for 50 weeks at a compound rate of 4.7% per week.
I am putting a lot of stuff on automation including minimum entry criteria for my discretionary trades, and will ramp up risk taken as the account buffer grows. Once again, my expectation is for a maximum draw-down of 40% (high to low) while trying to hit this target. There will be more overnight/swing-type option trading positions this year: I feel the need to close positions at end of day has limited upside on several occasions. However, those longer timeframes should be reserved for trades with better upside potential.
You are welcome to enjoy the ride.